Ending Exploitation in Supermarket Supply Chains

Stephen Doughty Excerpts

Thursday 18th October 2018 Commons Chamber

[Kerry McCarthy]

I thank my hon. Friend for raising that point. I have been talking to Nautilus International, the seafarers’ union, which has highlighted cases where people working on those ships are exploited. That is an issue in the oil sector, for example.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

My hon. Friend is detailing some horrific abuse. Unfortunately, I have seen examples of modern-day slavery in the agricultural sector in my constituency. Will she join me in praising the work of the Co-operative party, and particularly its charter on modern-day slavery? The charter raises issues of responsible procurement in food supply chains and the need to ask difficult questions about, for example, abnormally low tenders being given to ensure that modern-day slavery is not being used in those food supply chains.

[Kerry McCarthy]

I thank my hon. Friend for his intervention. I chaired a joint event last night between the APPG on human trafficking and modern slavery and the APPG on agriculture and food for development. One point made powerfully was that while we want the Government and the supermarkets to act—I will come to that in a moment—we must also look at procurement. The Government could be incredibly powerful if their procurement policies made it clear that they would not source from companies that could not give absolute assurance that there was not slavery in their supply chain.

I mentioned the Thai fishing sector. The Foreign Office should be doing more to support human rights defenders such as Andy Hall, whom I have been in contact with for many years. He has exposed some of the worst practices in food producing there, starting with the pineapple sector, and I think he is now writing about the chicken sector. He has been threatened, harassed and pursued through the courts as a result, and I do not think the Foreign Office is doing enough to support him.

The examples that I have given are clearly abhorrent and illegal, but it is also unacceptable that small-scale farmers and workers producing Indian tea and Kenyan green beans—common items in our supermarkets—are earning less than half of what is needed to ensure a basic but decent standard of living. When women working on grape farms in South Africa were surveyed, 90% reported not having enough to eat in the previous month. These are things that we take for granted; a grape is, to an extent, a luxury item, yet the women producing them cannot feed themselves or their families. If buyers were prepared to pay just three cents more per melon to a producer in Honduras and less than two cents on a banana in Guatemala, that would give those workers a living wage.

A big part of the problem is the supermarket model itself. It provides us with unparalleled choice. We can buy products from all over the world, all year round, at low prices and at our convenience. Retailers are increasingly operating in challenging circumstances, under threat from the discounters and online competition, and this is leading to over-consolidation. Tesco and Carrefour have teamed up to buy products. The planned merger between Sainsbury’s and Asda would see them control more than 30% of the UK groceries retail market. They have promised that, if the merger goes ahead, they will cut shelf prices on key items by 10%, which will cause yet more downward pressure on prices for suppliers. Supermarkets now keep an increasing amount of the money their customers spend—as much as 50% in some cases.

--- Later in debate ---

[Kerry McCarthy]

One point is that there is just so little transparency. A limited range of goods is covered by Fairtrade certification. It tends to cover commodities such as coffee, cocoa, bananas and so on. We need far greater transparency. During the horsemeat scandal, there were stories about lasagne selling for £1 that had traversed about 13 or 14 EU countries, with dozens of small products going into making this probably highly unappetising meal. It is so difficult to trace that, but we do need to make a start.

[Stephen Doughty]

I am one of the vice-chairs of the all-party group on Fairtrade. Further to the points made by my colleagues, is my hon. Friend aware that in the Sainsbury’s case, it was actively attempting—in my view—to deceive consumers by labelling its tea as “Fairly Traded”, when it was not in fact certified as Fairtrade tea by the Fairtrade Foundation. In fact, Sainsbury’s was severely criticised by the Advertising Standards Authority, and I think one of its adverts was banned. I, my hon. Friend the Member for Walthamstow (Stella Creasy) and others raised this with the ASA. Does my hon. Friend agree that it is totally unhelpful for supermarkets and others to be doing that and actively trying to deceive consumers?

[Kerry McCarthy]

I absolutely agree. I also think that big companies can have a Fairtrade brand that might account for 5% of its sales, but the rest of their coffee or tea does not carry that certification, so what does that say about the conditions under which that share of the market is produced?